1000% Dividends In FY23; Tech Mahindra Fixes Record Date For Interim Dividend For FY24; Q2 Results Next Week

One of the behemoths in the Indian IT sector, Tech Mahindra is the next in line to deliver its Q2 results after rivals like TCS, HCL Tech, Infosys, and Wipro. IT companies are known for paying huge dividends to their shareholders, and Q2FY24 so far has seen a similar trend. Companies like TCS, Infosys and HCL Tech have already declared interim dividends for FY24, the latest to join the bandwagon is Tech Mahindra.

On Friday, as per the regulatory filing, Tech Mahindra said, "We would like to inform you that the Board of Directors will also consider a proposal for payment of interim dividend for the financial year 2023-24, at its meeting scheduled on 24th October & 25th October 2023."

For the same, Tech Mahindra said it has fixed November 2, 2023, as the record date for determining the members entitled to receive the Interim dividend, if approved by the Board.

In the financial year FY23, the company paid a total dividend of 1000% amounting to Rs 50 per share.

On the current market price, Tech Mahindra's dividend yield is huge at 4.27%, making it one of the top large-cap stocks with high dividend yields.

On Friday, Tech Mahindra shares ended at Rs 1170.55 apiece on BSE, flat compared to the previous session. The company's market cap stood at Rs 1,14,194.29 apiece. Year-to-date, the stock has zoomed nearly 16% on the exchange.

Tech Mahindra is also set to declare its consolidated and standalone financial results on October 25 as well for the quarter ending September 30, 2023.

In Q2FY24, Axis Securities preview note on Tech Mahindra said, "We expect the company to report revenue de-growth of 0.1% on a QoQ basis while its margins are likely to remain stable during the quarter. Watch out for a) Deal TCVs and pipeline from communication vertical, b) Pricing scenario, c) Attrition, d) Outlook on growth/margins/DSO day, and e) Commentary on 5G rollout."

During the June 2023 quarter, Tech Mahindra posted a consolidated net profit of Rs 693 crore, which declined by 38% QoQ and 28.8% YoY. Revenue was at Rs 13,159 crore; down 4.1% QoQ, up 3.5% YoY. EBITDA at Rs 1,338 crore; down 33.8% QoQ, down 28.8% YoY. Total headcount stood at 148,297 down 4,103 QoQ.

Tech Mahindra offers innovative and customer-centric digital experiences, enabling enterprises, associates, and society to Rise for a more equal world, future readiness, and value creation. It is a USD 6.5+ billion organization with 148,000+ professionals across 90 countries helping 1250+ global customers, including Fortune 500 companies.